Colm Burke (Cork North-Central, Fine Gael)
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376. To ask the Minister for Finance the number of people that have applied to have their flat-rate expenses continued through 2025 as it was confirmed from 2025 that the credit would need to be claimed using PAYE services rather than being rolled forward from previous years; to provide a breakdown by profession; and if he will make a statement on the matter. [10555/25]

Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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384. To ask the Minister for Finance if he will address concerns raised in correspondence regarding tax credit certificates (details supplied); and if he will make a statement on the matter. [10701/25]

Albert Dolan (Galway East, Fianna Fail)
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391. To ask the Minister for Finance the number of taxpayers to date that have applied to have their flat rate expenses reinstated, in each staff category; if the Revenue Commissioners can provide data on the number of taxpayers who were in receipt of flat rate expenses in 2024, by staff type; and if he will make a statement on the matter. [10824/25]

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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394. To ask the Minister for Finance if he will provide the number of taxpayers to date that have applied to have their flat rate expenses reinstated, broken down to each tax category, in tabular form; and if he will make a statement on the matter. [11008/25]

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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395. To ask the Minister for Finance if he will provide a breakdown of the numbers in each staff category that were in receipt of flat-rate expenses in 2024; and if he will make a statement on the matter. [11009/25]

Johnny Guirke (Meath West, Sinn Fein)
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404. To ask the Minister for Finance the number of taxpayers to date that have applied to have their flat-rate expenses reinstated; the number in each category, in tabular form; and if he will make a statement on the matter. [11415/25]

Paul Murphy (Dublin South West, Solidarity)
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412. To ask the Minister for Finance following changes to how flat rate expense tax credit can be claimed, the number of taxpayers to date that have applied to have their flat rate expenses reinstated; the numbers in each staff category; and if he will make a statement on the matter. [11615/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 376, 384, 391, 394, 395, 404 and 412 together.

Section 114 of the Taxes Consolidation Act (“TCA”) 1997 provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.

I am informed by Revenue that the flat rate expense (“FRE”) regime is operated by Revenue on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 TCA 1997 is satisfied. Namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.

The FRE regime was established by Revenue to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary.

The FRE regime developed incrementally over the last 40 to 50 years and was established at a time when the numbers of employees/PAYE taxpayers filing an Income Tax Return was relatively low. This is in contrast to the position today, whereby due to significant IT developments in Revenue systems in recent years, as well as the promotion of online channels, Revenue is now providing an easy to use, free, on-line Income Tax Return filing solution for taxpayers. As a result, significant numbers of PAYE taxpayers routinely file an Income Tax Return to claim the range of tax reliefs and credits available to them, for example, medical expenses, the rent tax credit and remote working relief. In 2023, approximately 1.1 million PAYE workers filed a return, when compared with less than 300,000 in respect of the 2018 tax year. For 2024, over 840,000 PAYE workers have filed a return to date, but this is expected to increase throughout the year.

In relation to PAYE workers who claimed FREs, Revenue has provided further information in the table below for the years 2020 to 2024 inclusive. These figures are based on data currently available and are subject to change should additional claims for an FRE be made in respect of the relevant tax year.

A breakdown of FREs claimed by occupation for prior years is not available. However, Revenue will be in a position to provide figures based on claims made for 2025 in due course when such information is available.

Revenue automatically carries forward a number of credits and reliefs on taxpayers’ records. This ensures that a credit or relief which a taxpayer has claimed remains on their record in subsequent tax years. The automatic carry forward was applied to FREs for years up to and including 2024. However FREs, unlike for example, the PAYE tax credit, only apply to specific sectors. There are employees who change employments and no longer work in sectors that would be entitled to an FRE. An automatic carry forward of an FRE is therefore not suitable for this cohort, as it results in an individual automatically receiving an FRE that he or she is not entitled to.

In addition to this, having regard to the significant number of taxpayers who file a tax return and claim tax credits in year, Revenue decided to implement the new arrangements with effect from 1 January 2025 and to replace the automatic carry forward of FREs with a real-time claims-based system. In November 2024, Revenue wrote to all representative bodies / trade unions previously involved in negotiating an FRE to advise them of this change. Revenue also advised all PAYE taxpayers in their 2025 Tax Credit Certificate that if they are entitled to a FRE then with effect from 1 January 2025 they can claim an FRE using PAYE services through myAccount.

I am advised by Revenue that, to date, approximately 47,000 taxpayer units have claimed an FRE in respect of the 2025 tax year. A taxpayer unit is defined as a single taxpayer or a couple who are married or in a civil partnership and are jointly assessed for tax purposes. As mentioned above, Revenue will be in a position to provide a breakdown by occupation, based on these 2025 claims, in due course once available.

A taxpayer can make a claim for an FRE either in year through the PAYE Services tab in myAccount, or after the end of the tax year by submitting an Income Tax Return. When claimed in year, the benefit of the FRE is applied to the taxpayers tax credits in real-time. Full guidance on how to claim an FRE both in year and after the year end is available in paragraph 7.2 of the Tax and Duty Manual referenced below.

Where an FRE is not in place for an employment category, an employee retains his or her statutory right to claim a deduction under section 114 TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which the expenses are not reimbursed by the employer. The quickest and easiest way to claim tax relief for qualifying employment expenses is to complete an online Income Tax Return. For PAYE taxpayers, this return can be found in the PAYE Services tab in myAccount on the Revenue website.

In February, Revenue launched a public information campaign to raise awareness among PAYE taxpayers about the range of tax credits and reliefs available, and how they can claim those credits and reliefs. The press release in relation to the Revenue information campaign for PAYE taxpayers is available on the Revenue website at www.revenue.ie/en/corporate/press-office/press-releases/2025/pr-020425-paye.aspx.

Further guidance on FREs is available at the following links:

• Tax and Duty Manual - www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-20.pdf
• Website - www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/income-and-employment/flat-rate-expenses/index.aspx